Gold Surges to ₹1,60,177 as US-Iran Tensions Keep Safe-Haven Demand High

Gold prices climbed sharply in early MCX trade on 27 February 2026, reflecting rising safe-haven demand amid global geopolitical tension. April futures for MCX gold rose by nearly ₹500, or about 0.30%, to ₹1,60,177 per 10 grams, while silver March contracts surged over ₹7,100, or approximately 3%, to ₹2,66,800 per kilogram. The early trade rally underscores investor preference for precious metals as a hedge against uncertainty.

A major factor behind the price surge is the breakdown of US-Iran nuclear negotiations. Talks between Washington and Tehran ended without a deal, keeping geopolitical risks elevated. Analysts note that while some progress was made, the unresolved issues and continued technical discussions expected in Vienna next week have maintained volatility in global markets. The uncertainty has strengthened gold and silver’s appeal as safe-haven assets.

US political statements also added pressure on the markets. Officials, including Secretary of State Marco Rubio, described Iran as a “very grave threat,” reinforcing risk sentiment. Such geopolitical commentary often prompts investors to shift capital toward tangible assets like bullion, supporting higher prices in both domestic and international markets.

The US dollar index played a complementary role in influencing prices. Initially, the dollar climbed to around 97.82 but eased back to 97.69 after importer selling. A softer dollar generally makes gold and silver cheaper for holders of other currencies, boosting demand. At the same time, expectations of monetary policy by the Federal Reserve are supporting bullion. Markets currently anticipate approximately three 25-basis-point rate cuts in 2026, lowering the opportunity cost of holding non-yielding assets like gold.

Traders are also closely monitoring technical support and resistance levels on MCX and international markets. Key support for MCX gold is at ₹1,58,200 and ₹1,56,500, while resistance levels lie at ₹1,61,000 and ₹1,62,500. For silver, MCX support is noted at ₹2,55,000 and ₹2,48,800, with resistance around ₹2,64,600 and ₹2,71,000. Internationally, gold’s support is near $5,164 and $5,122 per troy ounce, with resistance at $5,222 and $5,265. These levels are important for investors and traders to identify potential entry and exit points.

In summary, the early trade gains in gold and silver reflect heightened safe-haven buying triggered by geopolitical uncertainty, a slightly weaker dollar, and dovish Fed expectations. Analysts recommend monitoring technical levels for strategic trading while keeping an eye on developments in US-Iran negotiations, which will likely continue to influence market sentiment.